Hillshire Brands in talks with suitors Tyson Foods, Pilgrim's Pride

Tyson Foods and Pilgrim's Pride bid for Hillshire Brands

Paul Sakuma and LM Otero, Associated Press

A package of frozen Tyson chicken nuggets, left, a package of Hillshire Farm sausage and the Pilgrim's Pride logo on the side of a company vehicle are shown. Hillshire Brands is holding separate talks with Pilgrim's Pride and Tyson Foods as the two meat processors engage in a bidding war for the maker of Jimmy Dean sausages and Ball Park franks.

A package of frozen Tyson chicken nuggets, left, a package of Hillshire Farm sausage and the Pilgrim's Pride logo on the side of a company vehicle are shown. Hillshire Brands is holding separate talks with Pilgrim's Pride and Tyson Foods as the two meat processors engage in a bidding war for the maker of Jimmy Dean sausages and Ball Park franks. (Paul Sakuma and LM Otero, Associated Press)

Hillshire Brands is the maker of Ball Park franks and Jimmy Dean sausage

Pilgrim's Pride has increased the price it is willing to pay for Hillshire Brands to about $6.7 billion

Hillshire Brands Co. said Tuesday that it is conducting separate talks with suitors Tyson Foods Inc. and Pilgrim's Pride Corp., which are competing to buy the maker of Ball Park franks and Jimmy Dean sausage.

Pilgrim's Pride confirmed Tuesday that it has increased the price it is willing to pay for Hillshire Brands to $55 a share, or about $6.7 billion, topping the bid made Thursday by Tyson Foods of $50 a share, or $6.1 billion. On May 27, Pilgrim's Pride made an unsolicited bid for the Chicago food company of $45 a share, or about $5.5 billion.

Industry experts say Tyson and Pilgrim's Pride, which is owned by Brazilian meat processor JBS, are trying to expand beyond the sometimes volatile sector of fresh meat and get into the more stable and more profitable prepared food business.

Tyson, the largest U.S. meat processor by sales, and Pilgrim's Pride, the world's second-largest chicken producer after Tyson, are vulnerable to weather and other adverse events that squeeze beef, pork and poultry supplies.

The offers require Hillshire to abandon its plans to buy Pinnacle Foods Inc., owner of brands such as Duncan Hines, Mrs. Butterworth's and Vlasic pickles.

In a rare demand that Fiat Chrysler Automobiles buy back as many as 193,000 flawed vehicles, the top U.S. traffic safety agency signaled a tougher stance on automakers that don't identify and quickly repair defects.

Industry giant Anthem Inc. reached a $54-billion deal to buy rival Cigna Corp., creating the country's biggest health insurer and triggering concerns about the immense power it could wield with employers and medical providers.